Do you understand what your homeowners insurance covers?

Our firm has been representing home insurance policy-holders in disputes with their insurers for more than two decades, and we have seen far too many examples of insurers that try to get away with paying homeowners less than they are entitled to.

Part of the reason insurers think that they can get away with this is because few people understand what their insurance policy actually covers. In fact, you may be surprised to learn what your homeowners insurance includes and excludes.

Perhaps the biggest misconception is that homeowners insurance only covers structural damage to your home. In reality, most policies cover much more than that.

Here are some examples:

Mandated upgrades: Most standard homeowners insurance policies cover the costs stemming from bringing a property up to code after a loss that was also covered by the policy.

Spoiled food: It is common for standard policies to cover up to $500 worth of food that spoiled in refrigerators or freezers during power outages.

Liability coverage: Typically, policies offer liability coverage of $100,000 to $300,000 in the case of a lawsuit against a dog owner stemming from a dog bite, or when the policyholder is sued for other civil claims such as slander.

Falling objects: Homeowners insurance often covers damage stemming from objects falling from the sky, such as out-of-use satellites.

Bicycle accidents: Although the policyholder may be far from home at the time, a typical plan also provides coverage when the policyholder causes an accident with a bicycle or other personal property.

On the other hand, far too many homeowners wrongly believe that they are insured for flood damage when they are not. In most cases, flood coverage must be purchased separately. Check out this article for even more homeowners-insurance coverage surprises.